/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, Feb. 18, 2022 /CNW/ - Kadestone Capital Corp.
("Kadestone" or the "Company") (TSXV: KDSX) (OTCQB:
KDCCF), a vertically integrated property company today announced
its financial results for the year ended December 31, 2021.
Highlights for the year:
- Cash and cash equivalents of $5,017,287 at December 31,
2021
- Investment of $7,680,000 in
Chilliwack and $7,800,000 in Squamish partnerships
- Sale of Kyle Rd investment property for $9,863,000 net of costs
- Cash financing of $4,750,000
through issuance of a convertible note
"We are very pleased to have completed our first full fiscal
year of operations in 2021 and having established the foundation
for our vertically integrated real estate company. We are excited
about identifying opportunities and securing additional
investments." said Brent Billey, the
Company's CEO.
Financial Results
The Company recorded a net loss for the year ended December 31, 2021 of $2,885,432 or $0.06
per share compared to a net loss of $2,535,809 or $0.08
per share for the same period in the prior year. The loss was
primarily due to expenses incurred for the ongoing operations of
the Company which included salaries and wages of $592,824, share-based compensation of
$1,025,985, interest expense of
$589,281 and professional fees of
$362,238 that were partially offset
by a fair value adjustment on investment properties of $128,673. Net cash used in operating activities
for the year ended December 31, 2021
decreased to $1,383,038 compared to
$1,733,574 for the year ended
December 31, 2020.
The above audited financial information, including comparative
information, is expressed in Canadian dollars and has been prepared
in accordance with International Financial Reporting Standards,
using the accounting policies and methods of application as
described in notes 2 and 3 of the Company's audited consolidated
financial statements for the years ended December 31, 2021 and 2020.
Sale of Kyle Road Property
The closing of the sale of Building 1 - 2648 Kyle Road,
Kelowna, BC: Strata Lots: 1, 2, 3,
4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 and 20
(the "Kyle Road Property") to Union Allied Capital Corp.
occurred on November 1, 2021 for a
price of $10,100,000 less
$237,000 in selling commissions and
closing costs. Concurrently, the Company repaid the remaining
balance of debt on the Kyle Road Property of $4,925,000 and accrued interest and fees of
$1,836, for net proceeds to the
Company of approximately $4,936,164.
About Kadestone
Kadestone was established to pursue the investment in,
acquisition, development and management of residential and
commercial income producing properties and procurement and sale of
building materials within major urban centres and high-growth,
emerging markets in Canada. The Company operates five
complimentary business lines spanning building materials
procurement and supply, property development and construction,
construction finance, asset ownership and property management.
These synergistic business lines have solidified Kadestone's vision
to become a market leading vertically integrated property company.
Additional information can be found at www.kadestone.com.
ON BEHALF OF THE BOARD
(signed) "Brent Billey"
President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding Forward- Looking Statements
Certain information in this
press release, including, but not limited to, statements that the
capital from the sale of the Kyle Road property will allow
the Company to pay down debt and the Company's vision
to become a leading vertically integrated property company,
may constitute forward looking information (collectively,
forward-looking statements), which can be identified by the use of
terms such as "may," "will," "should," "expect," "anticipate,"
"project," "estimate," "intend," "continue" or "believe" (or the
negatives) or other similar variations. Because of various risks
and uncertainties, including those referenced below, actual events
or results may differ materially from those reflected or
contemplated in such forward-looking statements. As a result, you
should not rely on such forward-looking statements. Additional
information identifying assumptions, risks and uncertainties
relating to Kadestone is contained in Kadestone's filings with the
Canadian securities regulators available at www.sedar.com. These
risks include those described in the "Risk Factors" section
of the Company's final prospectus dated September 2, 2020 and in the Management's
Discussion and Analysis for the years ended December 31, 2021 and 2020. The
forward-looking statements in this press release are applicable
only as of the date of this release or as of the date specified in
the relevant forward-looking statement. The Company has no
intention and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Kadestone Capital Corp.